The S&P Global UK Manufacturing PMI fell to 47 in August of 2025 from 48 in the previous month, revised lower from the preliminary estimate of 47.3 and firmly below the initial market expectations of 48.3. The result indicated the 11th consecutive contraction in manufacturing output in the UK, at the sharpest pace in three months. Output continued to fall, although at a softer pace than last month, amid lower production in industries of consumer and investment goods. This coincided with a faster drop in new orders, with firms siting subdued client confidence due to caution on costs following the increase in minimum wages and employer contribution to the National Insurance. Consequently, the lower demand for capacity drove factories to cut employment levels. On the price front, input cost inflation rose to its higher since May amid a rebound in raw material costs and higher National Insurance contributions, although only part of the cost hikes were passed onto output charges.